GB 112/212 MANAGERIAL ACC. W/ACCESS >C<
17th Edition
ISBN: 9781260218831
Author: Libby
Publisher: MCG CUSTOM
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Chapter 5, Problem 5.17E
1.
To determine
Compute the return on assets for the current and prior years and explain the meaning of the change.
2.
To determine
Explain the major cause(s) of the change in ROA using ROA profit driver analysis.
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Students have asked these similar questions
You are given the following information for Smashville, Inc.
Cost of goods sold:
Investment income:
Net sales:
Operating expense:
Interest expense:
Dividends:
Tax rate:
Current liabilities:
Cash:
Long-term debt:
Other assets:
Fixed assets:
Other liabilities:
Investments:
Operating assets:
Gross margin
Operating margin
Return on assets
Return on equity
$174,000
$ 1,400
$379,000
$ 86,000
$
7,400
8,000
$
%
%
%
%
40%
$ 21,000
$ 21,000
$ 46,000
$ 38,000
$130,000
Calculate the gross margin, the operating margin, return on assets, and return on equity. (Do not round intermediate calculations.
Enter your answers as a percent rounded to 2 decimal places.)
$ 3,000
$ 34,000
$ 64,000
Assets
Current assets
Cash
Accounts receivable
Inventory
Total
Fixed assets
Net plant and equipment
Total assets
SMOLIRA GOLF, INCORPORATED
2022 Income Statement
Sales
Cost of goods sold
Depreciation
EBIT
Interest paid
Taxable income
Taxes
Net income
Dividends
Retained earnings
Profit margin
Total asset turnover
Equity multiplier
Return on equity
$ 187,570
126,303
5,323
$ 55,944
1,420
$ 3,181
4,762
12,498
$20,441
$ 54,524
19,083
$ 35,441
$ 11,915
23,526
%
SMOLIRA GOLF, INCORPORATED
Balance Sheets as of December 31, 2021 and 2022
2021
2022 Liabilities and Owners' Equity
Current liabilities
Accounts payable
Notes payable
Other
$ 51,022
$ 75,789
$ 71,463 $ 98,589
$ 3,257
5,771
13,772
$ 22,800
times
times
%
Total
Long-term debt
Owners' equity
Common stock and paid-in surplus
Accumulated retained earnings
Total
Total liabilities and owners' equity
2021
$ 2,158
1,755
91
$4,004
$ 13,300
Construct the DuPont identity for Smolira Golf.
Note: Do not round intermediate calculations and round your…
Use the following selected 2016 balance sheet and income statement information for Home Garden Supply Co. (in millions) to compute asset turnover (AT) to the nearest hundredth of a percent.
Net income
Gross profit
on sales
Average
total assets
Sales
Tax rate on operating profit
$69,960
$700,400
$360,600
$1,356,504
35%
Question 24 options:
A)
3.76
B)
5.17
C)
0.27
D)
17.30
Chapter 5 Solutions
GB 112/212 MANAGERIAL ACC. W/ACCESS >C<
Ch. 5 - Prob. 1QCh. 5 - Prob. 2QCh. 5 - Prob. 3QCh. 5 - Explain what a material amount is.Ch. 5 - What basis of accounting (cash or accrual) does...Ch. 5 - Prob. 6QCh. 5 - Prob. 7QCh. 5 - Prob. 8QCh. 5 - Prob. 9QCh. 5 - For property, plant, and equipment, as reported on...
Ch. 5 - Briefly explain the major classifications of...Ch. 5 - Prob. 12QCh. 5 - Prob. 13QCh. 5 - Prob. 14QCh. 5 - If average total assets increase, but net income,...Ch. 5 - Prob. 2MCQCh. 5 - Prob. 3MCQCh. 5 - Prob. 4MCQCh. 5 - Prob. 5MCQCh. 5 - Prob. 6MCQCh. 5 - Prob. 7MCQCh. 5 - Prob. 8MCQCh. 5 - Prob. 9MCQCh. 5 - Prob. 10MCQCh. 5 - Prob. 5.1MECh. 5 - Prob. 5.2MECh. 5 - Prob. 5.3MECh. 5 - Prob. 5.4MECh. 5 - Determining Financial Statement Effects of Sales...Ch. 5 - Prob. 5.6MECh. 5 - Prob. 5.7MECh. 5 - Matching Players in the Accounting Communication...Ch. 5 - Prob. 5.2ECh. 5 - Finding Financial Information: Matching...Ch. 5 - Prob. 5.4ECh. 5 - Preparing a Classified Balance Sheet Campbell Soup...Ch. 5 - Prob. 5.6ECh. 5 - Preparing a Classified (Multiple-Step) Income...Ch. 5 - Prob. 5.8ECh. 5 - Prob. 5.9ECh. 5 - Prob. 5.10ECh. 5 - Prob. 5.11ECh. 5 - Stock Issuances and the Statement of Stockholders...Ch. 5 - Prob. 5.13ECh. 5 - Prob. 5.14ECh. 5 - Prob. 5.15ECh. 5 - Prob. 5.16ECh. 5 - Prob. 5.17ECh. 5 - Prob. 5.18ECh. 5 - Prob. 5.19ECh. 5 - Matching Transactions with Concepts Following are...Ch. 5 - Matching Definitions with Balance Sheet-Related...Ch. 5 - Prob. 5.3PCh. 5 - Prob. 5.4PCh. 5 - Preparing a Classified (Multiple-Step) Income...Ch. 5 - Prob. 5.6PCh. 5 - Determining and Interpreting the Effects of...Ch. 5 - Determining the Effects of Transactions on Ratios...Ch. 5 - Prob. 5.9PCh. 5 - Prob. 5.1APCh. 5 - Preparing a Statement of Stockholders' Equity...Ch. 5 - Prob. 5.3APCh. 5 - Prob. 5.4APCh. 5 - Evaluating the Impact of Transactions on Statement...Ch. 5 - Prob. 5.2CONCh. 5 - Finding Financial Information Refer to the...Ch. 5 - Finding Financial Information Refer to the...Ch. 5 - Prob. 5.3CPCh. 5 - Prob. 5.4CPCh. 5 - Prob. 5.5CPCh. 5 - Prob. 5.6CPCh. 5 - Prob. 5.7CP
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